SALE OF TWO PERFORMING MEZZANINE LOANS WITH A COMBINED UPB OF $15 MILLION OFFERING SUMMARY

Transcription

1 SALE OF TWO PERFORMING MEZZANINE LOANS WITH A COMBINED UPB OF $15 MILLION OFFERING SUMMARY

2 TRANSACTION SUMMARY Holliday Fenoglio Fowler, L.P. ( HFF ) has been exclusively engaged by the Seller to offer investors an excellent opportunity to purchase a 100% interest in two (2) individual mezzanine loans totaling $15.0 Million (the Loans ). The Loans are subordinate to two separate mortgage loans secured by the fee and leasehold interests in two (2) full service hotel properties (the Properties or the Hotels ). The Loans consist of one (1) note with a current balance of $5.0 million that carries a fixed-rate of 12.00%, in addition to one (1) note with a current balance of $10.0 million that carries a rate of 7.50%, floating over 30-day LIBOR. The associated collateral for the Loans contain a total of 921 keys and features two highlyregarded franchisors including Marriott and Hyatt. The Properties are located within primary markets of Texas and Georgia. Loan # 1 Loan # 2 Loan Status Performing Loan Status Performing Tranche Mezzanine Tranche Mezzanine Current UPB $10,000,000 Current UPB $5,000,000 Interest Rate Type Floating Interest Rate Type Fixed Rate 30-Day LIBOR plus 7.50% Rate 12.00% I/O Period Full-Term I/O Period Full-Term Recourse Non-Recourse Recourse Non-Recourse Origination Date 8/29/2014 Initial Maturity Date 9/9/2016 Originatino Date 1/6/2014 Maturity Date 2/1/2019 Fully Extended Maturity 9/9/2019 Options 3, 12 Month Property Type Full-Service Hotel Property Type Full-Service Hotel Total Keys 811 Total Keys 110 2

3 INVESTMENT HIGHLIGHTS Strong In-Place Metrics: The Loans are comprised of two (2) positions with respective balances of $5.0 Million and $10.0 Million. The Loans have a weighted average coupon 9.82%, with a WA duration of 1.8 years. The metrics for the Loans include a WA LTV of 76%, WA DSCR over 2.75x and a WA DY of 13%. Diversity of Assets: The opportunity presents investors an opportunity to acquire Loans associated with two (2) well positioned hotels in major metro areas of Texas and Georgia. Asset Performance: Both Hotels benefit from operating under strong flags, including Marriott and Hyatt, positioning them well amongst their respective competitive sets. The Hotels combined NOI have grown a total of 18% between 2014 and Institutional Quality Sponsorship: The sponsorship associated with the Loans include two separate, institutional groups with substantial real estate holdings, specifically in the hospitality sector. Both sponsors remain committed to their respective assets, having maintained timely debt service payments associated with both the senior and mezzanine positions, invested capital into their Hotels and provided results-proven expertise to the assets, as represented by recent NOI growth. INDIVIDUAL LOAN OVERVIEW Loan # UPB $/Key Keys Rate 1 Attach LTV 2 Detach LTV 2 DSCR 3 Debt Yield ,000,000 91, % 67% 77% 3.16x 13.70% 2 5,000, , % 54% 73% 1.28x 10.22% Total/WA 15,000, , % 64% 76% 2.77x 12.98% [1) Loan 1 has a spread of 7.50%, floating over 30-day LIBOR. [2) Cumulative LTV based on HFF s estimated value of the associated collateral. [3) DSCR and DY are calculated utilizing financials for yearend 2016 (less FF&E). 3

4 SALE PROCESS Launch Indicative Bid Date Best and Final Bid Date Winning Bidder Selected Closing Wednesday, August 16th Thursday, September 7th Thursday, September 21st Friday, September 22nd Week of September 25th The Loans is being offered in a sealed bid offering. Bids will be evaluated based on a number of criteria established at the Seller s sole discretion, including but not limited to price, the prospective buyer s experience, ability to perform, and other potential criteria the Seller may require to qualify and approve a prospective purchaser and/or bid. BID DEADLINE All initial offers in connection with this sale are requested on or before Indicative Bid Date by 5:00PM CST. Please note that Seller, in its sole and absolute discretion, reserves the right to modify this process and the time frames set forth above, as well as the sole and absolute right to accept or reject any bid or to sell or not sell the Loans contained within. BID COMPONENTS Bidding instructions will be posted to the secure document center prior to the indicative bid date. The Seller will request that final bids include comments to the Loan Sale Agreement ( LSA ), which form will be available to the Best and Final Bidders in the online document center. Upon Seller awarding the bid, the Bidder will be responsible to remit a non-refundable 10% earnest money deposit within 48 hours of signing the LSA. TRANSACTION COSTS/TERMS Each prospective purchaser will be required to pay all costs and expenses it incurs in connection with its evaluation of the Loan, the underlying Collateral and the closing of the contemplated transaction including, but not limited to, its counsel fees and desired title work. The Loan is being sold on an as-is, where-is basis. Other terms of the contemplated sale, including limited Seller representations and warranties will be included in the LSA. DATA ROOM An online data room is available to prospective purchasers and includes all relevant Loan and Property level documents pertaining to the sale. The data room can be accessed via myhff login at 4

5 Sale Inquiries Brock Cannon Managing Director Stephen Van Leer Associate CA Inquiries Kristin Nolan Production Coordinator Additional Loan Sales Contacts Tom Hall Managing Director Stephen Schwalb Associate Sean Ryan Senior Director Kyle Shaffer Analyst Patrick Arnold Director William Harrington Analyst Holliday Fenoglio Fowler, L.P. ( HFF ) a New York licensed real estate broker Holliday Fenoglio Fowler, L.P. ( HFF ), HFF Securities L.P. and HFF Securities Limited (collectively, HFFS ) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 24 offices and is a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information, please visit hfflp.com or follow HFF on HFF has been engaged to sell to qualified purchasers the seller s interest in the Loan. All information concerning the Loan or the underlying collateral described herein has been obtained from sources other than HFF, and neither HFF, nor seller, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express of implied, as to the accuracy or completeness of such information. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any and all liability that may be based upon or relate to the use of the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change. 5

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